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Montreal – less expensive than other major cities in NA

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According to KPMG’s recent Competition Alternatives study, Greater Montreal enjoys on average a 15% cost advantage against U.S. cities, with Toronto following as a close second (see Figure 1). It means of the 20 largest North American cities, Montreal is the most competitive in terms of cost, based on factors like labour, transportation, taxes, utility and facility costs, and 20 others.

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2016 Quebec Budget – What’s New for My Company?

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On March 17, 2016, Quebec’s Finance Minister Carlos J. Leitão presented the new Quebec budget, a highly anticipated document at the dawn of the new fiscal year. Here we present the highlights related to key tax credits, grants, and other measures affecting businesses.

NEW MEASURES

Temporary Refundable Tax Credit for Major Digital Transformation Projects

Any digital contract signed between March 17th, 2016 and January 1st, 2019, leading to the creation of more than 500 jobs in Quebec could enable a company to receive ...

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New $50-million Federal Export program aims to facilitate international expansion

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Last month, the federal government has introduced a new funding program that aims to incentivize small and medium-sized Canadian enterprises to diversify their export markets and increase competitiveness on a global scale. This new five-year program, aptly named CanExport, promises offer up to $50M in financing to Canadian SMEs to expand their business opportunities abroad, especially in high-growth economies.

This program will provide $10,000 to $100,000 in matching grants annually until 2021 to help eligible SMEs ...

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2015-2016 Quebec Budget: highlights from a corporate incentives point of view

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Yesterday, March 26th 2015, Quebec’s Minister of Finance and the Economy unveiled the province’s yearly budget. Following are the summarized highlights for the corporate tax changes:

Corporate income tax rate:

  • Gradual reduction by 0.1% per year over the next 5 years from 11.9% to 11.5%

Refundable tax credit for the development of the e-business (TCEB):

  • Made permanent
  • New non-refundable 6% tax credit of the wages eligible for the TCEB and a cap of $25,000 per job
  • Exclusion of certain work related to an agreement entered ...
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Tax Holiday for Foreign Experts and Researchers

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Is your company carrying out scientific research or experimental development (SR&ED) projects in Quebec? Did you recently hire a foreign expert/researcher to help with those projects? Are you looking for a qualified expert/researcher to conduct your project but can’t find one in Canada?
If you answered yes to any of these questions, you should learn about Quebec’s tax holiday for foreign experts and researchers.

These tax credits are designed to facilitate the recruitment of foreign experts or foreign researchers capable of ...

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Standardizing the Quebec R&D Tax Credit Rates – December 2, 2014 Changes

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The Quebec government announced changes to the refundable R&D tax credit programs. The R&D tax credit rate was standardized from 14% (for large corporations) to 30% (for Canadian Controlled Private Corporations) for all Quebec R&D tax credit programs (i.e., Wages, University, Private Partnership for Research, and Eligible Consortium commonly known R&D tax credit programs). The Quebec government also introduced expenditure exclusion amounts for the purposes of R&D tax credits based on a corporation’s assets, namely an exclusion of $50,000 (assets ...

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Manufacturing SR&ED – Abeilles Tax Ruling Case

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On October 23, 2014, the Tax Court of Canada (TCC) ruled in favour of the taxpayer in a case where the Canada Revenue Agency (CRA) rejected SR&ED claims of the company Les Abeilles Service de Conditionnement Inc. This judgement brought to light many interesting considerations on SR&ED project eligibility and the type of activities that constitute experimental development.

The taxpayer had claimed four different projects. Each involved the development or improvement of manufacturing processes or ...

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Definition of “Assistance” broadened in the context of SR&ED tax credits

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On September 11 2014, the Federal Court of Appeal upheld a lower court decision involving a Halifax-based biotechnology company and the Canada Revenue Agency (CRA) that impacts R&D funding on the SR&ED program.

Between 2005 and 2008, Immunovaccine Technologies received approximately $3.8 million in cash “advances” from the Atlantic Canada Opportunities Agency to develop vaccines. They also claimed SR&ED tax credits during this period. CRA deemed the advances to be government assistance, which effectively reduces the SR&ED investment tax credits.

This ...

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Despite cuts, Quebec remains the most generous province for R&D tax credits

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In the province of Quebec, where the recently elected Liberal government presented its first budget, strong austerity measures were put in place. The budget featured cuts across the board to provincial level tax credits with almost all being reduced by 20%. The tax credit for wages paid to R&D staff reduces from 37.5%  to 30% (for qualifying CCPCs) and from 17.5% to 14% (for other corps). This would reduce the maximum total refund (federal and provincial) for salary paid (for ...

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Countdown to the End of SR&ED Eligible Capital Expenditures

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You have until December 31, 2013 to purchase and ensure new equipment is available for use if you want to claim SR&ED tax credits on this equipment. Following this date, equipment purchases will no longer be eligible for SR&ED tax credits.

Salaries, materials consumed, materials transformed, contract payments, and overhead will remain eligible, but at a reduced rate of 15% instead of 20% for non-Canadian-controlled private corporations (the enhanced rate for Canadian-controlled private corporation will remain at 35%). As well, the prescribed ...

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